Public sector lender Oriental Bank of Commerce (OBC) has reported a net loss of Rs 1,218.01 crore for last quarter ended March 2017 on a huge jump in provisioning for bad loans.
The bank had made a net profit of Rs 21.62 crore during the similar quarter of preceding fiscal ended March 2016. Total income of the bank during January-March quarter of 2016-17 came down to Rs 5,093.84 crore as against Rs 5,488.27 crore, as per bank’s balance sheet.
There was a net loss on bank’s balance sheet for the entire fiscal at Rs 1,094.07 crore. It had registered a net profit of Rs 156.08 crore in the preceding fiscal 2015-16. Total income in the entire 2016-17 fiscal stood at Rs 21,187.85 crore, lower from Rs 21,934.78 crore a year ago.
Asset quality on the bank worsened with net non performing assets (NPAs) rising to 8.96% of the net advances as on March 31, 2017 against 6.70% a year ago. Gross NPAs or bad loans were 13.73% as a percentage of gross advances at the end of March, up from 9.57% a year ago.
Bank’s provisioning for bad loans almost trebled at Rs 3,050.60 crore for the last quarter, from Rs 1,086.51 crore a year ago. Of the other key matrices, non-interest income of the bank increased by 56.6% on the year to Rs 2,765.52 crore compared with Rs 1,766.28 crore.The net interest margin, the difference between interest earned and interest paid, for the year was at 2.42%.
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